Maharashtra govt becomes new owner of iconic Air India building by paying Rs 1,601 cr

New Delhi: The Maharashtra government has become the owner of the iconic Air India building with the Union government approving the transfer of the asset on Thursday.

The Maharashtra government bought the Air India building at Nariman Point in Mumbai for Rs 1,601 crore.

"GoI has approved the transfer of Air India building, Mumbai of AI Assets Holding Company Ltd (AIAHL) to Government of Maharashtra (GoM) at the consideration of Rs.1601 cr. GoM has agreed to waive dues of Rs. 298.42 cr, which would have been otherwise payable by AIAHL to GoM for this transaction," DIPAM Secretary Tuhin Kanta Pandey said in a post on X.

GoI has approved transfer of Air India building, Mumbai of AI Assets Holding Company Ltd to Government of Maharashtra (GoM) at consideration of Rs.1601 cr. GoM has agreed to waive dues of Rs. 298.42 cr, which would have been otherwise payable by AIAHL to GoM for this transaction

— Secretary, DIPAM (@SecyDIPAM) March 14, 2024

AIAHL, a Government of India company under the administrative control of the Ministry of Civil Aviation, was set up in 2019 to hold non-core assets and debt of Air India.

The non-core assets of Air India, including land and building, valued at Rs 14,718 crore was transferred to AIAHL after it was set up by the government as a precursor to the sale of Air India for holding the debt and non-core assets of the then-national carrier.

The government had on January 27, 2022, transferred ownership in Air India to the Tata Group which had in October 2021, put in a Rs 18,000 crore bid for buying Air India.

Constructed in 1974 on a land owned by the state government, the building will now be used by it as its office space. Nearly 46,470 square meters of space will be available for government offices in the 23-storey building.

After the 2012 fire at Mantralaya, the state secretariat building in south Mumbai, four major departments -- public health, medical education, water supply and sanitation, and rural development -- have been operating from GT Hospital. These departments, along with others, may be shifted to the Air India building.

One of Mumbai's iconic buildings, the sea-facing Air India tower was built by John Burgee of the New York-based architectural firm Johnson/Burgee. Burgee was known for his contribution to post-modern architecture.